Japan's Rapidus Secures ¥267.6B for 2nm Chips
Japanese semiconductor firm Rapidus Corporation has secured 267.6 billion yen in a funding round backed by the Japanese government and private companies. The investment is aimed at moving the company from R&D to mass production of 2-nanometer logic semiconductors by 2027. This move is part of a broader national strategy to regain leadership in advanced chip manufacturing.
Rapidus is a consortium established in August 2022, backed by eight major Japanese companies including Sony, Toyota, and SoftBank, to re-establish Japan's leadership in advanced semiconductor manufacturing. The initiative is a cornerstone of Japan's broader strategy to triple domestic chip sales to ¥15 trillion by 2030 and ensure its economic security. The Japanese government views this as a critical national project and may take a majority stake and exercise veto power if the venture faces financial difficulties. The company is led by industry veterans, including Chairman Tetsuro Higashi, former president of Tokyo Electron, and CEO Atsuyoshi Koike, who previously headed Western Digital Japan. To accelerate its development, Rapidus has dispatched over 150 engineers to IBM's Albany NanoTech Complex in New York to jointly develop 2nm technology. This strategic partnership with IBM provides Rapidus access to foundational 2nm gate-all-around (GAA) transistor technology. Rapidus is constructing its first fabrication plant, known as IIM-1, in Chitose, Hokkaido, with a pilot production line scheduled to start in April 2025. The company is targeting mass production of 2-nanometer chips in 2027, a timeline that positions it against industry giants like TSMC and Samsung, who aim for 2nm production in 2025. The Hokkaido facility will uniquely integrate both front-end and back-end manufacturing processes to shorten production times. The 2nm node represents a significant leap in performance and energy efficiency, crucial for demanding AI and high-performance computing applications. This advanced node is expected to deliver a 45% performance boost or a 75% reduction in power consumption compared to 7nm chips. The move to 2nm requires overcoming significant technical hurdles, such as managing quantum tunneling effects and extreme heat dissipation, and utilizes costly extreme ultraviolet (EUV) lithography. Looking beyond 2nm, Rapidus is already planning for the next generation of semiconductors. The company is collaborating with France's Leti research institute and the University of Tokyo to develop 1nm process technology, which is expected to enter the mainstream in the 2030s. This forward-looking research aims to secure Japan's long-term competitiveness in the global semiconductor landscape.
